Chandigarh Sets Guidelines For App-Based Cabs, Limits Base, Surge And Cancellation Charges

The Chandigarh administration has implemented the Motor Vehicle Aggregators Guidelines 2020, under which the fares charged by app-based cab aggregators like Ola and Uber will be regulated.

According to the guidelines implemented on Thursday, aggregators were to be defined as a digital intermediary or marketplace, allowing passengers to connect with a cab driver.

BCCL

Base fare

As per the guidelines, the minimum base fare chargeable to customers will be for a minimum of 3 km to compensate for dead mileage and distance travelled and fuel utilised for picking up the customers. The aggregator will be allowed to charge a fare 50% lower than the base fare and a maximum surge pricing of 1.5 times the base fare will be allowed.

Driver will get 80% of the fare

The cab driver will receive at least 80% of the fare applicable on each ride, and the aggregator will receive the remaining charges for each ride. A levy of 2% over and above the fare may be directed towards the state exchequer for amenities and programmes related to aggregator-operated vehicles.

Taxi fare not determined by govt

As per the guidelines, if the state government has not determined the city taxi fare, an amount of Rs 25/30 will be the base fare for fare regulation.

BCCL

For motor cabs, fare regulation will only apply to cabs not exceeding four-metre length with a capacity below 1500cc diesel or petrol engine. Fare regulation will not apply to electric vehicles.

Fare will be charged from point of boarding

However, no passenger will be charged for dead mileage (except when the distance for availing of the ride is less than 3 km) and the fare will be charged only from the point of boarding to the point of alighting.

Cancellation fees

On cancellation of a booking by a driver after accepting a ride on the app, a penalty of 10% of the total fare not exceeding Rs 100 can be imposed when such cancellation is made with valid reason.

BCCL

Similarly, on cancellation of a booking by a rider, a penalty of 10% of the total fare not exceeding Rs 100 will be imposed.

App-based cabs in Chandigarh

As per the State Transport Authority record, there are 1,700 Uber cabs, of which 459 are registered in Chandigarh and 1,241 in Punjab and Haryana. Similarly, of 2,317 Ola cabs, only 215 are registered in UT and the reaming 2,102 are in Punjab and Haryana.

CCI ask app-based cabs to self-regulate

In September, the Competition Commission of India (CCI) said that cab aggregators like Ola, Uber and Meru will now have to formulate clear and transparent policies concerning the sharing of revenue on account of surge pricing between the drivers and them.

CCI had also issued a set of self-regulatory measures to ensure fair competition and an overall well-functioning ecosystem.

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